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2. I understand how to BUY and wait for the price to go up.
But I don't understand how you make money on SELL.
Why should you be confused, because to make a profit, it's clear that you definitely have to sell the crypto assets that you have. Even if you buy a crypto asset, like bitcoin or ETH, and then the crypto coin experiences a price increase. But when the price increases, you don't sell it, meaning you can say, you haven't got a real profit, but only get a profit in terms of market value. So basically, don't get too confused about how to profit from put options. Because of the put option, crypto investors usually use it to sell their assets when the market price has increased.
For example, let's say I believe BTC will go down. So I BUY BTC. And then I wait for it to go down and then SELL.
Don't I lose money?
If you do that, it's clear you will lose your money. Because logically and what is learned in trading and investing in bitcoin or all cryptocurrencies, basically you have to buy crypto assets at low prices, and you have to sell them at prices that are rising.
That way you can benefit. But if you buy crypto like bitcoin, and you sell it when it goes down. So it's clear you will definitely experience losses.